Diamond Foods has struck a deal to buy the Pringles snack brand from consumer goods giant Procter & Gamble for US$2.35 billion.

The transaction will see Pringles join a Diamond stable including the Kettle Chips brand, which the company acquired last year.

A deal had been speculated about in the autumn when P&G reportedly turned down a deal with Diamond over concerns about how the deal was structured.

Diamond said yesterday that the acquisition of Pringles would more than triple its snacks business and more than double its snack sales in the US and the UK – its two largest markets.

Pringles will also make Diamond a more international business, with 49% of its sales coming outside the US. The company said that it would gain a “broader global manufacturing and supply chain platform” with access to markets including Asia, Latin America and central Europe.

Diamond chairman, president and CEO Michael Mendes called Pringles an “iconic, billion-dollar snack brand” and said the acquisition would create an “independent, global leader” in the snack industry.

“Our plan is to build upon the brand equity Pringles has established in over 140 countries. This strategic combination will create an independent, global leader in the snack industry with a focus on quality and innovative products. Not only is this combination immediately accretive, it also creates a platform that we believe will allow us to build shareholder value for years to come,” Mendes said.

The sale of Pringles also marks P&G’s departure from the food sector. Pringles had been P&G’s only food product among home and personal care brands like Gillette razors, Bold fabric conditioner and Duracell batteries.

P&G chairman, president and CEO Bob McDonald said the transaction – expected to occur through a “split-off” transaction in which the company’s shareholders can swap shares for Diamond stock – was a “terrific deal” for its investors.

“We are confident Diamond Foods will be an excellent new home for our snacks employees,” said McDonald. “This is also a terrific deal for our shareholders – maximising value and minimising earnings per share dilution.”

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